Increase in air passengers slows in 2008

Posted at 03/13/2009 1:00 AM | Updated as of 03/13/2009 1:01 AM

The number of domestic and international air travel passengers in the country managed to grow last year despite the global economic crisis, although at a rate slower than that of 2007.

Civil Aeronautics Board (CAB) data show that domestic air passengers grew by 13.2% to 11.765 million last year from 10.389 million in 2007.

Growth in passengers for 2007, however, was 22%.

International air passengers coming in and departing from the Philippines, meanwhile, grew by 6% to 12 million in 2008 from 11.3 million the previous year.

Growth in 2007 was 11%.

CAB Executive Director Porvenir P. Porciuncula said in a phone interview yesterday that the agency expects a 10% rise in domestic air passengers this year but no growth for international passengers.

But domestic air cargo fell 3.6% to 137.521 million kilograms from 142.695 million kg for the same comparative periods, the same CAB data show.

In terms of international air passenger flow, local carriers with comparative figures were:

  • Philippine Airlines (PAL), which rose 6.2% to 3.613 million from 3.401 million; and
  • Cebu Pacific Air, which rose 28.5% to 1.320 million from 1.027 million.

In terms of domestic air passenger traffic:

  • PAL increased 21.7% to 4.909 million from 4.033 million;
  • Air Philippines dropped 21.8% to 914,570 from 1.168 million;
  • Cebu Pacific grew 20% to 5.351 million from 4.458 million;
  • Zest Air (formerly Asian Spirit) dropped 22.8% to 374,145 from 484,482; and
  • South East Asian Airlines (SEAIR) dipped 11% to 217,879 from 245,020.

Total domestic load factor — or the number of passengers in a plane against full seating capacity — of the five airlines dipped slightly to 77.77% from 77.89%. PAL’s load factor dipped to 78% from 79%, Air Philippines rose to 78% from 73%, Cebu Pacific dropped to 79% from 83%, Zest Air rose to 70% from 58%, while SEAIR increased to 71% from 60%.

Mr. Porciuncula said that though rise last year in domestic passenger traffic was slower than in 2007, it was "still respectable."

Mr. Porciuncula also credited continuous air talks with foreign states to have contributed to the increase in international passenger flow despite dampened global air travel. For this year alone, the country’s air panel has completed four air service negotiations with foreign counterparts.

Claire S. Quiray of Accord Capital Equities Corp. said that the promos and discounts offered by carriers offset the potential effects of the global economic crisis. "People really took advantage of the promos and discounts which the airlines offered. The public seems to be really saving just to avail of the promosThe marketing strategy of the different airlines somehow offset whatever grave effect the crisis brought."

Prince Anthony Yeung of AB Capital Securities, Inc., said that promos and discounts showed that carriers were willing to shave off a little revenue to maximize capacity. "Airlines are now willing to take slightly less service costs per passenger to increase passenger volume. That is because ticket costs, however low, may actually be higher still than the actual cost of servicing the passenger."

In terms of domestic cargo:

  • PAL dipped 2.9% to 60.891 million kg from 62.678 million kg;
  • Air Philippines dropped 54.8% to 5.428 million kg from 12.004 million kg;
  • Cebu Pacific rose 17.1% to 63.4 million kg from 54.155 kg;
  • SEAIR increased 29.3% to 306,133 kg from 236,725 kg; while
  • Pacific East Asia Cargo Airlines dropped 45% to 7.496 million kg from 13.621 million kg. — Jose Bimbo F. Santos

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